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BSE launches trading in BRICSMART indices derivatives
Trading commences in Hang Seng Index Futures, FTSE/JSE Top40 Futures, iBOVESPA futures and MICEX Index Futures
Commenced First Phase of BRICS Exchanges Alliance
March 30, 2012--BSE (formerly known as the Bombay Stock Exchange) today, in a bell ringing ceremony, launched the first phase of BRICS (Brazil, Russia, India, China and South Africa) Exchanges Alliance by commencing trading in Hang Seng Index Futures, FTSE/JSE Top40 Futures, iBOVESPA futures and MICEX Index Futures.
The Consul Generals of the four nations along with Mr. Rajeev Agarwal (Whole-time member – SEBI), rang the Opening bell to mark the launch of trading in these benchmark indices.
Last October, leading Exchanges of the BRICS emerging market bloc had announced a joint initiative to expose investors to products in these dynamic economies.
Being the Indian exchange member of this alliance, BSE will provide India investors access to the important BRICS’ economies through cross-listing products and other avenues to promote development between these markets.
While addressing the gathering, MD & CEO, BSE, Mr. Madhu Kannan, said, “Today marks an important event for BSE. The products we are introducing today are part of our efforts to not only link growing Indian markets to opportunities in other emerging markets but equally importantly giving Indian investors access to growth opportunities across the world. We thank the partner Exchanges, Regulators, and the Ministries of Finance and External Affairs for all the support.”
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Source: BSEIndia
BSEIndia-Index based market wide circuit breaker for the Quarter 1st April, 2012 to 30th June, 2012
March 30, 2012--Trading Members of the Exchange are hereby informed that the Exchange implements on a quarterly basis (SEBI circular SMDRPD/Policy/Cir-37/2001 dated June 28, 2001) the index based market wide circuit breaker system. The system is applicable at three stages of the index movement either way at 10%, 15% and 20%.
This circuit breaker brings about a coordinated trading halt in all equity and equity derivative markets nationwide.
The market wide circuit breakers would be triggered by movement of either SENSEX or the NSE S&P CNX Nifty whichever is breached earlier.
In case of a 10% movement of either of these indices, there would be a 1-hour market halt if the movement takes place before 1 p.m. In case the movement takes place at or after 1 p.m. but before 2.30 p.m. there will be a trading halt for ½ hour. In case the movement takes place at or after 2.30 p.m. there will be no trading halt at the 10% level and the market will continue trading.
In case of a 15% movement of either index, there will be a 2-hour market halt if the movement takes place before 1 p.m. If the 15% trigger is reached on or after 1 p.m. but before 2 p.m., there will be a 1 hour halt. If the 15% trigger is reached on or after 2 p.m. the trading will halt for the remainder of the day.
In case of a 20% movement of the index, the trading will be halted for the remainder of the day.
The percentages are calculated on the closing index value of the quarter. These percentages are translated into absolute
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Source: BSEIndia
12-57MR ASIC releases exchange traded funds report
March 29, 2012--ASIC released a report on exchange traded funds (ETFs) today which outlines how this growing industry is regulated in Australia and the impact of proposed international principles to address concerns by overseas regulators. Report 282 Regulation of Exchange Traded Funds ( REP 282), explains ASIC’s current understanding about the operation of ETFs and ongoing work in this area.
ETFs can provide a convenient and low-cost way for investors to diversify and receive returns close to the performance of market indexes or other assets, often with lower fees than traditional managed funds. But while standard, ‘physical’ ETFs generally invest in the underlying investments they are designed to track, ‘synthetic’ ETFs also use derivatives, such as swap agreements, to achieve similar outcomes. Benefits to investors of synthetic ETFs may include access to new and varied asset classes and low performance ‘tracking error’. Downsides include increased complexity and counterparty risk.
view the REPORT 282
Regulation of exchange traded funds
Source: ASIC
New ETFs Included in Real-Time Dissemination of "TSE Indicative NAV"
March 28, 2012--Tokyo Stock Exchange, Inc. (TSE) will newly calculate and publish the real-time Indicative Net Asset Value (Indicative NAV) per share for the below Exchange Traded Funds (ETFs) beginning April 16, 2012.
Code: 1567
ETF: MAXIS TOPIX Risk Control (5%) ETF
MAXIS TOPIX Risk Control (5%)
Fund Administrator: ETF Mitsubishi UFJ Asset Management
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Source: TSE
IMF Working paper-Spillover Effects of Exchange Rates: A Study of the Renminbi
March 27, 2012--Summary: This paper estimates the impact of China’s exchange rate changes on exports of competitor countries in third markets, which we call the "spillover effect". We use recent theory to develop an identification strategy in which competition between China and its developing country competitors in specific products and destinations plays a key role.
We exploit the variation - afforded by disaggregated trade data - across exporters, importers, product, and time to estimate this spillover effect. We find robust evidence of a statistically and quantitatively significant spillover effect. Our estimates suggest that a 10 percent appreciation of China’s real exchange rate boosts on average a developing country’s exports of a typical 4-digit HS product category to third markets by about 1.5-2 percent. The magnitude of the spillover effect varies systematically with product characteristics as implied by theory.
view the IMF Working paper-Spillover Effects of Exchange Rates: A Study of the Renminbi
Source: IMF
TSE Regarding News Reports
March 26, 2012--Today, some media outlets reported that Tokyo Stock Exchange (TSE) and London Stock Exchange's joint-operation of TOKYO AIM (a market for profession investors) will be dissolved and that TSE will assume sole operations of the exchange.
However, there is no factual basis regarding such a decision at the present time.
Source: TSE
SSE Multi-tiered Blue Chip Market Index System Improved with SSE 100, 150 Indices
March 26, 2012--After years of development, the Shanghai Stock Exchange (SSE) has basically developed a multi-tiered blue chip market index system composed of the indices based on shares of typical companies represented by SSE 180 constituents, shares of rising companies represented by SSE 380 constituents and shares of promising companies with great potential in growth.
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To show the characteristics of shares in various market levels and provide new investment targets for investors, the SSE and China Securities Index Co., Ltd. (CSI) recently announced that they would release SSE 100 and 150 Indices on April 20, 2012, each with the base day of December 31, 2003 and the base point of 1,000 points.
According to the compilation scheme, SSE 100 Index, by taking SSE 380 Index as the sample space, selects as the samples the top 100 shares with the best performances in both the growth rate of business income and the rate of return on net assets to highlight the characteristics of rising companies in growth. SSE 150 Index, by taking the eligible shares on the Shanghai stock market with the constituents in SSE 180 and 380 Indices excluded as the sample space, selects as the samples the top 150 shares with the best performances in the growth rate of business income and the turnover rate to reflect the characteristics of promising companies in active stock trading and rapid development.
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Source:Shanghai Stock Exchange (SSE)
DB-Equity Research-Asia-Pac ETF Market Weekly Review: ETP assets hold on around $100bn, but still under pressure
March 26, 2012--Market Review
All the major Asia-Pacific markets were down last week. From north to south, Japan (Nikkei 225) fell by 1.17%, Korea (KOSPI2) declined by 0.12%, China (CSI 300) was down by 2.69%, Hong Kong (HSI) decreased by 3.04%, Singapore (FSSTI) slipped by 0.68%, and Australia (S&P/ASX 200) dropped by 0.13% over the previous week.
New Launch Review
Last week, only one new product was launched in the Asia-Pacific ETP market. New entrant Canara Robeco listed one Gold ETF on National Stock Exchange (India) tracking domestic price of physical gold.
Turnover Review
Asia-Pacific ETP turnover totaled $5.2bn for the last week, 14.5% down from the previous week’s total. South Korea continues to be on top of the turnover ranking with $1.6bn, followed by China ($1.4bn), Hong Kong ($1.3bn), Japan ($0.5bn), and Taiwan ($0.1bn). Among Equity ETFs, Emerging Country, Asia Pac Developed Country, Leveraged Strategy, and Short Strategy ETFs had total turnover of $2.6bn, $0.8bn, $0.7bn and $0.5bn respectively. Under the Commodity asset class, turnover in Gold ETPs totaled $113m for the last week.
Assets Under Management Review
Last week, Asia-Pacific ETP AUM declined by $0.7bn and ended at $99.9bn. On a year to date basis, Asia-Pacific ETP market is up by $8.4bn or 9.2% above last year’s closing.
to request report
Source: Deutsche Bank - Equity Research - Asia Pacific
SSE 100 Index and SSE 150 Index to be launched
March 26, 2012--To further enhance the SSE index family as well as to provide new analysis tools and underlying instruments for investors, Shanghai Stock Exchange and China Securities Index Co., Ltd
announced that the SSE 100 Index and SSE 150 Index would be launched on Apr 20, 2012.
Source: Shanghai Stock Exchang eChina Securities Index Co., Ltd
China’s currency: Lost in transaction
March 23, 2012--Currency swaps aren't enough to bolster China's renminbi to a reserve currency status, Sally Wong, CEO of the Hong Kong Investment Funds Association, told Citywire Global. Provisions must be met for longer term investment.
Wong spoke as China announced a $31 billion currency swap with Australia yesterday .
‘We would very much like to see measures to allow international fund managers to gain access to the mainland interbank bond market, which amounts to RMB 2 trillion (US 0.3 trillion),’ Hong Kong based Wong said.
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Source: City Wire